PKR Falling Down Against USD
The Pakistani rupee (PKR) has reached a new record low against the US Dollar, opening trade at 296 in the interbank market today.
By noon, the market conditions worsened as the rupee fell to 300, dropping by about Rs. 4 against the dollar due to negative market trends. The situation deteriorated further between 1:30 PM and 2:30 PM, with the rupee hitting 301 and remaining around this level for the rest of the day. Throughout the day, exchange rates in the open market fluctuated between 304 and 310.
By the market’s close, the PKR had lost 0.26% of its value, closing at 301 against the dollar, a loss of 78 paisas in one day. This downward trend has persisted all week, particularly since the new caretaker government took charge. The unofficial exchange rate, which differs from the official bank rate, is even higher, ranging between 313 and 319. Experts predict further declines, with new record lows potentially reaching 300 to 305 in August.
In simple terms, the Pakistani rupee has fallen significantly, dropping by about Rs. 81 since January 2023 and more than Rs. 128 since April 2022. Today alone, the rupee lost 78 paisas against the dollar.
Adding to the economic concerns, the State Bank of Pakistan reported a $125 million decrease in foreign currency reserves within a week. As of August 18, the central bank’s reserves stood at $7.931 billion, down from $8.055 billion on August 11. The bank attributed this drop to debt repayments.
